However, Ms Ball said the TMA would not insist on any exemptions to unfair preference payments that involved related party payments or phoenix transactions.
“The amendment would not however, exempt those payments made by a company pre-insolvency to any related party or where there exists phoenix company-type transactions.”
The government has already made significant changes to Australia’s insolvency regime to save businesses and jobs during the COVID-19 pandemic.
Fear for small businesses
In March it placed a moratorium on insolvent trading laws including temporarily increasing the threshold at which creditors can issue a demand on a company and/or initiate bankruptcy proceedings. It also gave relief for directors from personal liabili…
Read the full article at: https://www.afr.com/policy/economy/creditors-in-danger-of-repayment-demands-from-rash-of-insolvencies-20200728-p55g48
